Rieter Holding AG

thank you and good morning ladies and gentlemen a warm welcome also from my side this is the agenda we will briefly look at the key messages deep dive into the current trading results review the status of the planned bar mark acquisition and provide an update on our strategy execution and close with the outlook before we look into the details let me say a word about the current environment The market situation continues to be characterized by investment restraint due to trade policy uncertainty in key markets. Although Rieta registered growing interest for new machine projects, many requests did not yet lead to binding orders intake as customers postponed their investment decisions until the 2026 financial year. Lower volumes in the machinery business and the associated weak demand for installation services, along with cost-saving measures by customers, are delaying the conversion of orders into sales. And they're also waiting on the earnings of the after-sales and component divisions. So now to the key messages on slide number four. Let's start with the green boxes on the left. Order intake at 559 million Swiss banks was only 11% lower than the prior year period. However, if we exclude the exceptionally high purchase order of our Chinese customer, DIW, in the financial year 2024, order intake in the first nine months of 2025 was 11% higher than previous year. The improvement was driven by a strong third quarter in 2025. Sales at 458 million Swiss francs were 22% below the prior year period. Maybe a word on orders above sales. Longer book to bill cycles can be observed in the after sales business in particular. And on the blue boxes, as mentioned, the market outlook remains challenging. This is also why we continue to relentlessly push performance improvements across the group to reduce costs significantly. At the upcoming It's My Asia exhibition taking place in Singapore next week, so end of October 2025, we will be presenting novel automation solutions that paved the way towards fully automated production. And last but not least, the gray boxes. The bar mark acquisition is on track. The capital increase has strengthened our balance sheet and the necessary financing for the acquisition has been secured. And now to the market. Slide number six shows the market situation at a glance. After a promising first quarter 2025, macroeconomic turbulences strongly impacted market sentiment. Let's start with the rest of the world, which you can see on the left side. There, the overall market development in Europe and Turkey remained flat. However, we are seeing positive signals in some Asian countries as well as in the Americas. Particularly in the Americas, RIRTE was able to record new orders. In addition, additional promising opportunities for new machines are arising in Latin America. This is the result of the reshaping of supply chains and nearshoring. The demand for automation solutions is on the rise, which validates our strategic approach and the efforts we are making to realize a fully automated mill. Let's go to India. If we look at the overall Indian market, which is dealing with the fallout from the tariff dispute, we see that mills in general continue to struggle with low margins, especially smaller ones in the southern part of India. Given the significant role the textile industry plays in India's economy, the government is stepping up its support for this vital sector. We are seeing strong meal utilization among Reiter customers and have signed now several large contracts. And what is also important, automation solutions are more and more in high demand. Last but not least, China. China remains the strongest market. The investment sentiment is particularly positive for the domestic market. And the government is providing targeted support for the Western territories. So let's move to order intake. Slide number seven shows our quarterly performance since 2023, excluding the mentioned big, big order from the Chinese customer, DIW, which we recorded last year. If you look at this chart, you see that without the DIW purchase, we see here that order intake has steadily risen by 11% during the first nine months of 2025. If this trend persists, we would expect this year's fourth quarter to also exceed last year's final quarter. This concludes my part of the presentation, and I will hand over now to Oliver.

Thank you, Thomas. Good morning, all. Let's look at order intake on slide number eight. Order intake stood at 559.3 million Swiss francs in the first nine months of 2025, which equals an 11% drop to the prior year period. As we saw on the previous slide, the year-to-date order intake level is clearly unsatisfying and below expectations but we saw an accelerating trend in the third quarter 2025 with a run rate which is much closer to a normal market than we have seen in a long time. A month does not make a quarter, and a quarter does not make a year, but we take this as a positive for the time being. Now to the divisional details based on year-on-year performance. The machines and systems division recorded a particularly large decline of 49.1 million Swiss francs because, as mentioned, some commitments did not materialize or customers postponed their investments decision to 2026. The components division's order intake fell by 19.6 million Swiss francs, mainly as a result of the soft machines business. The after-sales division, by contrast, continues to deliver a solid performance, with an increase of 16.8 million CHF in order intake. This positive development once again confirms the strategic growth initiatives that we initiated. The decline in order intake was further accentuated by some foreign exchange translation effects in the amount of 18.6 million Swiss francs. Which takes me to slide number nine on sales. The realization of sales remains challenging as a result of the geopolitical uncertainties. Many customers are reluctant to adhere to previously fixed schedules and push out their investments by changing the delivery dates. Sales, therefore, were 457.7 million CHF in the first nine months of 2025, which represents a 22% drop compared to the prior year period. Sales in the machines and systems division fell by 76.5 million CHF, in the components division by 27.7 and in the aftersales division by 19.8 million CHF. Similar to last year, we expect a significantly stronger fourth quarter this year when it comes to sales generation. The negative FX translation impact amounted to 11.6 million Swiss francs. Let's turn to the plant Barmok acquisition. The plant acquisition of Barmok makes us a globally leading system provider for natural and man-made fiber. We are confident that all required regulatory approvals for the completion of the acquisition will be obtained in the fourth quarter of 2025. This step represents an important milestone in the implementation of the company strategy which was announced in October 2024. The last weeks were extremely eventful as we successfully secured the long-term financing of this landmark transaction under challenging conditions. We are grateful for the strong investor support and the commitments of our financing partners. Without those two success factors, this historic transaction, and I will come to that, would not have been possible. We as a team are convinced that Baramog will unlock significant value for our shareholders and other stakeholders in the coming years. I would like to share a couple of facts and highlights. Ladies and gentlemen, this was the largest public equity raise relative to market cap in Switzerland ever successfully completed. The numbers say it all. The deal earned the 79% Sorry, a 79% approval rate at the extraordinary general meeting in September 2025 with a 99% take up for the rights issue. This is truly extraordinary and I can't thank our shareholders enough for this amazing endorsement. The rights issue enabled the diversification of the shareholder base, which will also support the next chapter of our equity story. And on the debt side, we were able to sign 750 million Swiss francs syndicated credit facilities with a group of Swiss and international lenders. To conclude with, all the temporary bridge facilities have been successfully refinanced and that well before the closing of the transaction. In short, funds are ready. On the right hand side, you can see the status of the regulatory approvals. All filings and approvals are according to schedule and clearing is still depending on some competition authorities, especially China, Egypt and Turkey, whereas approvals have already been obtained in India and Portugal. Consequently, we expect the transaction to be approved in the coming months which will then trigger the closing of the deal. That's it from my side. Back to you, Thomas.

Thank you, Oliver. So let's talk about strategy. And this takes me to the update on slide number 12 and 13 and onwards. This is our strategy house, which we unveiled at last year's Capital Markets Day. And it still relates to the actual realtor company. After a successful closing, of the bar mark acquisition, we will have to refine the strategy to make it valid also for the whole new REIT group. Let me highlight three areas, automation and digitization, supply chain excellence, and the child structures. At the ITMA in Singapore next week, we are presenting novel automation solutions that paved the way towards fully automated production. Imagine a fully manual mill today. It takes around 20 operators to produce 1.9 tons of yarn per shift and 10,000 spindles. In a fully automated mill with cutting edge ritter technology, which we will present finally then in 2027 at the ITMA in Hannover, it only takes three operators for the same output. Now at ITMA in Singapore, we are presenting three technologies that will be key to achieve full automation. According to our sample mill calculations, we are now already achieving a ratio of more or less six operators per 10,000 spindles. So great progress of the team. You can see these innovations on slide number 15. And let's start with the servo bale on the left side. Servobail is a system for the automated transport of cotton and man-made fiber bales. The system adapts to different packaging sizes and enables customized lay down. Servobail can also be easily integrated with an existing bale management system. In the middle you see ServoCAN. This is our fully automated CAN transport system, which automatically guides CANs from carting to spinning. ServoCAN replaces manual transport, lowers the labor cost, and ensures continuous and consistent material flow. And last but not least, at the end of the whole line, ServoPack. The fully automated packaging system is the comprehensive solution for the efficient processing of packages, including transport, quality control, and packaging. It ensures final production stability thanks to the quality control system. And ServoPack also enables the customized design of pallets, boxes, and bags to meet customer requirements. At the end, for the whole packaging activities, you don't need a single person anymore. The next chapter you see on slide 16 is agile structures and supply excellence. We continue to push for performance improvement across the group. This means we are relocating functions to customer markets. This includes the decentralization and strengthening of the sales organization to improve customer centricity. We are also establishing P&L responsibility for regions and branches to increase accountability and entrepreneurial spirit. We are improving our production footprint. This means we are optimizing production to increase efficiency and leverage economies of scale. We are executing our China plus one footprint strategy for all machinery types to reduce dependency on global supply chain. We are optimizing our supply chain. This means we are rolling out and completing right at the moment our global procurement organization. And we reduce key dependencies in supply chain with a dual sourcing concept. And last but not least, we are heavily working on production cycle times to be faster and much more improve time to market. Last but not least, we are simplifying our organizational structure by increasing efficiency, by reducing organizational complexity and redundancies. And last but not least, you will see that also by the end of the year, we continue to manage our overhead costs very, very tightly. Now, let's have a look on our adjusted outlook for the full year 2025. As a number of projects have been postponed for deliveries to 2026 due to the macro political uncertainties, and this does not include the Barmark division, now expect sales for the full financial year 2025 of around 700 million Swiss francs. Previously, our guidance was 750 to 800 million Swiss francs. Despite these lower sales volumes, we still expect an operating EBIT margin at the lower end of the range of 0 to 4%. This excludes restructuring costs and costs associated with the acquisition of Barmark. In that area, we would like to give a little bit more insight. For the full year 2025, Reiter expects transaction costs with an impact on EBIT of around 15 million Swiss francs. We also see significant additional restructuring costs with an impact on this EBIT figure. And then net financial expenses, including the expenses associated with the acquisition of Barmark, will be around 20 million Swiss francs. As a consequence, if you're operating EBIT is between 0 to 4% and at the lower end, and you take into account all these extraordinary costs, our net result is expected to be negative. and thus will deviate significantly from the prior year figures. With that, we conclude our presentations, and I hand over to Relindis for the Q&A session.